A Secure Investment Structure
Delaware Statutory Trusts (DSTs) offer a legally sound structure for investors seeking secure and flexible property ownership. Established under Delaware law, DSTs are recognized for their reliability and asset protection features. They allow multiple investors to hold fractional interests in institutional-grade real estate without direct property management responsibilities.
Passive Income Made Accessible
One of the main advantages of Delaware Statutory Trusts is their ability to generate passive income. Investors benefit from professionally managed real estate portfolios that produce regular income through rent collection and asset appreciation. This setup is ideal for those seeking consistent cash flow without the burden of active property management.
Ideal for 1031 Exchange Opportunities
DSTs are a popular choice for those utilizing a 1031 exchange. By reinvesting proceeds from a previous real estate sale into a DST, investors can defer capital gains taxes while diversifying their holdings. This approach provides both tax efficiency and access to high-quality commercial properties, such as multifamily housing, medical offices, or industrial facilities.
Limited Liability With Diversification
With DSTs, investors enjoy limited personal liability and reduced risk exposure. Since each trust owns multiple assets across various sectors and regions, the diversification further shields participants from market volatility. The trust structure ensures decisions are made by experienced managers, reducing emotional decision-making.
Accessibility for Smaller Investors
Unlike traditional real estate investment trusts or direct ownership, DSTs require relatively low minimum investments. This opens the door for individual investors to access premium real estate opportunities typically reserved for institutional buyers. As a result, DSTs have become a powerful tool for building wealth and achieving long-term financial goals in a hands-off manner.